UNDERSTANDING BANKROLL MANAGEMENT AND BUDGETING YOUR BETS
Staying within budget in sports betting is entirely about how well you manage your bankroll or the money you are using to bet with.
Just recently with the Toronto Raptors taking home their first NBA title in 24 years you can be certain there were fans betting on the win.
Today, I wanted to discuss how budgeting and betting with a bankroll are critical to wins and losses in the betting world.
When budgeting you can create whatever budget categories suit your financial situation and lifestyle.
For example, I have an allowance category which fuels my coffee purchases and if I want to buy the occasional case of beer.
Many of you may play the lottery each week or go to the casino or even take trips to Las Vegas to spend the weekend gambling with friends.
Either way, you’re spending money that needs to be managed BEFORE you start spending it on that winning bet or spin.
What is bankroll management?
Bankroll management is a fairly new term in the world of sports betting which is where budgeting comes into play.
Commonly referred to as just BM, it essentially comes down to how much you should bet per play.
The main problem with more than 90% of sports bettors that they don’t know anything about bankroll management, which leads to inevitable losses in the long-term.
These punters (bettor) always chase their losses in the hope of ‘one big win’ that can recover everything they’ve lost.
It is, in fact, the single biggest reason why bookmakers are always profitable.
Considering that many offline/online tipsters deliberately recommend losing bets to punters, it is even more important for punters to take things into their own hands and ensure continuity of their earnings.
Budgeting and Management Methods
Below we talk about some budgeting or bankroll management methods that can help you always keep things in control.
Determine your bankroll size
Bankroll size is about figuring out the amount of money you must deposit into your account with the off-line/online bookmaker.
While this amount will depend on your financial comfort level, it’s important that you never bet an amount that you cannot afford to lose.
Now how much you can afford to lose might vary from person to person based on their personal financial situation.
In essence, you should realistically assess your financial situation and determine the amount that you’ll not regret parting away with.
After establishing the amount you can afford to lose, go with a figure which reflects the time span of your betting activity.
If you plan to bet on only the major sporting events of the year, for instance, NBA Championships, March Madness, Super Bowl, etc., you should be investing fewer amounts of money than compared to betting each and every day of the year.
What’s most important is that once you have figured out a number you must stick with it no matter what.
This is extremely important for budget management and sports betting because you can easily lose sight of the bigger picture. if you are continuously withdrawing and depositing money from and to your account.
Select A Unit Size
Once you have determined the size of your bankroll, it’s about figuring the percentage you wish to bet on every event.
If you’re just starting out, we suggest that you go with a unit size anywhere from 1% to 5% and maintain consistency.
In general, if your bankroll size is moderate to large, let’s say anywhere over $ 200, you must not go over 2% to 3% of your bankroll per bet.
For lesser than $ 200 bankroll, you can have 5% to 8% per bet too.
Please note, a large majority of online bookmakers allow minimum bets of $ 1 to $ 2, hence it is always possible to maintain a 2% – 4% range with deposits of $100 or less.
You may think that maintaining a specific percentage is too safe a strategy.
How do professional bookmakers play such huge bets and earn big payoffs?
To be truthful, even professional sports bettors don’t wager more than 1% of their bankroll.
It’s about being smart with your money and understanding the right way to make money fast but with the least amount of loss.
The final step is about re-evaluating your bankroll from time to time and adjusting your budget as needed.
Keep in mind that all pro-level sports bettors realistically expect to win no more than 60% of their bets.
Having expectations such as this implies that they are fine with losing 40% of the time.
These pros perceive losses as part and parcel of the game, and never take them to the heart.
Discussion: What other tips do you have for those who want to learn bankroll management while sports betting?